In the year in which an estate terminates, its beneficiaries receive and can use as their own any unexpired NOL carryforwards proportionately to the corpus assets that they received.

Question

Quizplus · Accepted Answer

This statement is true. When an estate terminates, any unexpired NOL carryforwards are distributed proportionately among the beneficiaries based on the corpus assets they received. This means that if a beneficiary received a larger portion of the estate's assets, they would receive a larger portion of the unexpired NOL carryforwards. The beneficiaries can then use the NOL carryforwards as their own in future tax years.

In the Year in Which an Estate Terminates, Its Beneficiaries